Watch Your Savings Grow With These Helpful Habits
In my last blog post I talked about being prepared to evacuate in case of an emergency…another type of emergency you should be prepared for is financial.
The year 2020, if it’s done nothing else, has taught us the importance of being prepared, financially and otherwise, but have we let those lessons go unacted upon, or are we just hoping for the best?
- In the year 2020 about half of Americans have either lost their job, had their hours reduced, have been furloughed, or have had to take a pay cut. Many others have experienced unplanned for medical costs.
- It has also been noted that about half of Americans have only $1000 or less in their savings accounts.
What’s in your Savings Account?
It’s not always easy to build up a savings account, and it’s definitely not something that can be accomplished over night…it’s a process that takes patience, will power and diligence. But it’s a process that’s well worth the effort.
It’s not your salary that makes you rich; it’s your spending habits.” – Charles A. Jaffe
Helpful Habits to Grow Your Savings Account…
- Look over your budget and decide how much could be saved from every paycheck. It doesn’t matter if it’s $20 or $200, what matters is that you plan it and do it.
- Many banks will let you set up automatic transfers from checking to savings. If your paycheck is deposited directly into your savings account, you can probably set it up that the amount you want to save will go directly into you savings account. This takes all the effort out of your hands…. your savings is automatic.
- When extra cash comes in, such as a tax return, or a bonus, enjoy some of it, but set some aside, even if it’s just a little, to deposit into your savings account.
- Let your spare change work for you. At the end of the day, if you have a few coins in your wallet or pocket, drop it into a jar, and on a regular basis, deposit it into your savings account. A few lone dimes and nickels may not seem like much, but they can add up fast.
- Recognize and be honest about your bad spending habits:
- Not having a budget.
- Spending without a plan of where you want to be financially in the next few years.
- Recognize where you could cut costs.
- Impulse buying.
- Eating out too often.
- Using your credit card too frequently and too easily.
- Paying for subscriptions you are not actively using.
- Frequenting online shopping or the shopping channels when you don’t have a specific purchase you need to make.
- Going grocery shopping when you’re hungry.
- Going to the mall as therapy when you’re sad, angry or bored.
- ***At the end of the month, figure out how much you’ve saved, and deposit it in your savings account.
- Involve the whole family in this new habit. Help them understand the importance of being prepared and having money set aside for a “rainy day,” and how they can contribute. This is a great teaching opportunity to help them develop good habits for their future.
At Whitcomb Insurance, we would be happy to sit down with you and give you all the information you need, and answer all your questions so you can make the decision that is right for you and your family.
Along with great insurance options, we also offer Financial Services. You can count on us to be totally honest and upfront with you!
Contact us or give us a call at 425-391-8731.